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Africa: Vaccine Manufacturing Needs a Favorable Environment to Deliver Returns On Investment

AllAfrica 3 days ago

After securing crucial financing for vaccine manufacturing development, Africa's ecosystem needs to be conducive to delivering clear returns on investment, as Dr. Jean Kaseya emphasized to delegates convened for the 2nd Edition of the Global Event on Harnessing Private Sector Engagement for Sustainable Vaccine and Pharmaceutical Manufacturing in Africa, hosted in Nairobi.

The meeting from June 25-27 was co-organized by the Africa Centres for Disease Control and Prevention, WHO's Local Production and Assistance Unit, and the Directorate-General for International Partnerships of the European Commission.

Africa CDC, led by Director-General Dr. Jean Kaseya, has developed the African Pooled Procurement Mechanism (APPM) to improve access to quality and affordable health product technologies and promote local manufacturing.

African Union Heads of State and Governments have mandated Africa CDC to build regional solidarity and predictability around the demand for vaccines, diagnostics, and therapeutics.

In an update, Dr. Kaseya stated that Africa CDC is working with WHO PQ to ensure that the process does not hinder investments while guaranteeing quality health products.

"We will not compromise on quality, and we are collaborating with AUDA-NEPAD and other advanced NRAs to ensure quality is guaranteed while awaiting leadership from the African Medicines Agency," he said.

Nakhumicha S. Wafula, Cabinet Secretary of Health, Kenya, highlighted longstanding challenges in Africa's pharmaceutical industry, including limited production capabilities, technical know-how, minimal investments by governments and private enterprises, disjointed market entry and shaping strategies, and lack of a harmonized pharmaceutical regulatory system.

Wafula mentioned current challenges such as high input costs, inadequate investments in research and development, lack of favorable long-term financing conditions, regulatory harmonization issues, and unfavorable procurement legislation.

"We are forced to contend with over 75% of pharmaceutical imports and over 98% of vaccine imports to maintain our health commodity supply. This is not sustainable for our governments and our people," she emphasized.

Dr. Kaseya added that Africa CDC is collaborating with the African Continental Free Trade Area to ensure the movement of health products within the continent, allowing African-manufactured health products to freely circulate.

A recent update on the African Vaccine Manufacturing (AVM) landscape, in partnership with CHAI and PATH, identified 23 manufacturers across different states poised to manufacture vaccines locally. Three of these manufacturers are expected to produce 8 products for the African market within the next 4 to 5 years.

"We acknowledge that these projects have varying needs and require different areas of support to materialize and progress. We must avoid working in silos or independently from each other," Dr. Kaseya emphasized.

African Export-Import Bank (Afreximbank) renewed its partnership on June 20 with Africa CDC and committed a USD 2 billion facility to the "Africa Health Security Investment Plan" to support the continent's health product manufacturing ambition. In the same month, the Gavi Board approved the Gavi Alliance's new five-year strategy (2026-2030), focusing on accelerating vaccine coverage, introducing new vaccines, strengthening health systems for equity, and supporting global health security and regional vaccine manufacturing.

"While the financial commitments from GAVI and Afreximbank are substantial, we must ensure we make the best use of these resources through coordinated efforts," Dr. Kaseya emphasized.

Africa's pharmaceutical industry has been growing steadily, reaching USD 28.56 billion in 2017 from just USD 5.5 billion a decade earlier. Wafula projected that this market will reach between USD 56 billion and USD 70 billion by 2030.

"This strategic growth underscores the need to position Africa's local pharmaceutical industry for these opportunities," she added.

Wafula noted that while stakeholders work on ecosystem setups, African leaders are looking to their partners in global vaccines and pharmaceuticals for technology transfer, crucial for building a strong and reliable vaccine and pharmaceutical manufacturing base in Africa. Dr. Kaseya called for a collaborative approach to align efforts with African needs and priorities. "By doing so, we can create a sustainable and robust healthcare ecosystem that truly serves the people of Africa."

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